Chemist Warehouse executives snap up Mosman shop
Chemist Warehouse executives have snapped up another prime strip retail property – this time in Mosman.
The 398 square metre holding, 868-888 Military Road (pictured, top), set the buyer, via a syndicate, back $11.8 million at auction in September.
It is an investment, sources say; with 507 sqm, committed until at least 2029 to bookstore Harry Hartog.
Based on the present annual rental return – $400,000 – the deal reflects a low 3.3 per cent yield.
Zoned E1 Local Centre, it has longer term development upside – up to 11 metres, according to Ray White marketing agent Scott Stephens.
The vendor, the wealthy Verity family, paid $8.6m in late 2022.
Executives build book
Ahead and after the float of the Chemist Warehouse business, founders, as part of various partnerships, have been buying strip retail shops – like 868-888 Military Rd, at prime junctions – as investments, possibly for longer-term occupation.
In Richmond, Melbourne, they recently moved the business into an ex-bank next door to the town hall, bought in 2021.
Executives have also acquired spectacularly located properties they don’t occupy in blue-ribbon locations including in South Yarra, at the busy corner of Toorak Rd and Chapel St, and Brighton – on Church St.
In the regional NSW town of Grafton meanwhile, it picked up a Cotton On outlet next to a property it occupies, in 2023.
Another low yield Mosman deal
Mosman, Sydney’s priciest suburb measured by median house value, is about seven kilometres north east of town.
Harry Hartog was established by Robert and David Berkelou, sixth generation of a family holding local bookstores.
As well as new and secondhand books, it sells gifts and lifestyle products.
The sale comes a month since we reported a historic Sheridan backed investment at 623-625 Military Rd sold for $11.5m – a 3.5pc net passing yield.
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